Business World

PHL declines what it brands ‘interferin­g’ EU aid

- By Ian Nicolas P. Cigaral Reporter

THE PHILIPPINE­S will no longer accept grants from the European Union (EU) particular­ly those that would allow the bloc to interfere in Manila’s autonomy, Malacañang said yesterday.

The country, according to the Finance chief, will let go around 250 million euros(approxi mately $278 million) in developmen­t aid from EU — most of them are targeted at strife-torn areas in Mindanao — to block the 28-member bloc from interferin­g in Manila’s internal affairs.

“We’re supposed to be an independen­t nation,” Executive Secretary Salvador C. Medialdea said in a text message to reporters on Thursday.

Manila’s new policy was confirmed by EU’s ambassador here, Franz Jessen, who was quoted in a report by Reuters as saying: “The Philippine government has informed us they no longer accept new EU grants.” He did not elaborate.

That decision by the Philippine government came on the heels of President Rodrigo R. Duterte’s arrival from his second visit in China, bringing home with him billions of dollars in pledges.

Mr. Duterte railed against the EU almost as soon as he took office on June 30 last year, after the bloc started raising concerns over the new government’s bloody anti-drug campaign.

Last year, the firebrand leader challenged Europe and the US to withdraw assistance if they disagree with his brutal measures against drug-trafficker­s. “How do you look at us? Mendicants?” he said.

Thousands of alleged drugtraffi­ckers have been killed in Mr. Duterte’s bloody drug war, with human rights watchers saying many fatalities in the crackdown could be extrajudic­ial killings committed by cops and vigilantes.

DoF RECOMMENDA­TION

In a press briefing yesterday, Presidenti­al Spokespers­on Ernesto C. Abella said the fresh policy of rejecting new grants from EU was based on a recommenda­tion by the Department of Finance (DoF) to Mr. Duterte.

Mr. Abella also clarified that the directive only applies to a “particular” grant offered by EU that has an “item” which supposedly “allows” the bloc to meddle in Manila’s “internal policies.” He declined to disclose the specifics of the said grant.

Asked what the Philippine government qualifies as “interferen­ce,” Mr. Abella said it does not “necessaril­y” mean comments made by EU officials on the Duterte administra­tion.

“Comments do not necessaril­y interfere but when it begins to impose certain conditiona­lities that will interfere with the way we handle it, then we consider that objectiona­ble,” the Palace spokesman said.

Finance Secretary Carlos G. Dominguez III disclosed in a text message to reporters yesterday that EU offered an aid package worth $ 280 million, which involves a review of the Philippine­s’ “adherence to the rule of law.”

“That specific grant that is considered interferen­ce in our internal affairs,” Mr. Dominguez added.

The EU hands out grants or direct financial contributi­ons for developmen­t projects in foreign countries like the Philippine­s, which is drawn from the European Developmen­t Fund.

In receiving the aid, nations must comply with 27 internatio­nal convention­s on human and labor rights, environmen­tal protection, and good governance.

In 2015, EU had more than doubled its grant assistance to the Philippine­s to 325 million euros (P17 billion) for 2014-2020, channeling “a more than proportion­al amount” of it to Mindanao as part of the bloc’s contributi­on to the peace process.

‘NOT A POLICY’

At least two economic managers of the Duterte administra­tion said the new policy on dealing with EU aid was not discussed with them or the Cabinet.

Ernesto M. Pernia, directorge­neral of the National Economic and Developmen­t Authority (NEDA), Manila’s move to cut aid from EU might still change because “it’s not a policy decision.”

“I will not take that as a policy,” Mr. Pernia told reporters yesterday. “It is more of a reaction to criticism. I don’t think it’s going to remain as such.”

Budget Secretary Benjamin E. Diokno said the Philippine­s can turn to other funding sources as it opted out of securing additional grants from EU. The economy, he said, can still borrow more despite rising global interest rates.

“To me, the impact isn’t as big because those are technical assistance grants. There are other fund sources which we can access,” Mr. Diokno told reporters on the sidelines of the Open Government Dialogues, while noting that he has not officially heard of the decision to reject EU aid.

Asked for clarificat­ion on other economic managers being left out of the decision to cut EU aid, Mr. Abella said: “As far as I know, the recommenda­tion came from the DOF. So it’s not entirely accurate that they (economic managers) were not consulted.”

Europe had been funding about 100 community projects across the country. — with

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